Government Contract Accounting & Bookkeeping Services

services, offices, or information representing public sector operations and official functions
services, offices, or information representing public sector operations and official functions

Managing government contracts requires precise financial oversight and strict compliance with regulations.

With the complexities involved, having a reliable accounting system is crucial to ensuring your projects stay on track and within budget.

Government Contract Accounting for DCAA Compliance

Government contract accounting requires more than standard bookkeeping. Contractors must maintain accurate financial records that support Federal Acquisition Regulation (FAR) requirements, labor distribution reporting, indirect cost tracking, and DCAA-compliant accounting practices.

Arrow Bookkeeping helps government contractors establish reliable accounting processes that support contract performance, cost visibility, and audit readiness. Our team assists with project-based accounting, labor allocations, indirect rate tracking, and financial reporting designed to meet the unique requirements of government-funded projects.

Government contracts often come with tight margins and stringent reporting requirements. Navigating these demands requires precise financial management, from initial budgeting to final audit. Trusting experts who understand the intricacies of contract accounting is essential to maintaining compliance and optimizing financial performance. We specialize in tracking project costs, managing indirect rates, and labor allocations, and ensuring accurate reporting, so you can focus on delivering results without the stress of managing financial details.

Bookkeeping Services

  • Chart of Accounts Revamp & Set-Up
  • Weekly/Monthly Expense & Income Tracking
  • Accrual Accounting (Accrued/Prepaid Expense Tracking & Deferred/Unbilled Revenue Tracking)
  • Month-End Financial Report Package
  • Class Allocations
  • Project Costing
  • Labor Allocations
  • 1099 filings
  • Sales Tax filings
  • Year-End Preparation*
  • DCAA-Compliant Accounting System Support
  • Contract-Level Cost Tracking
  • Direct and Indirect Cost Segregation
  • Labor Distribution Reporting
  • Timekeeping Compliance Support
  • Overhead Rate Monitoring
  • Fringe and G&A Expense Tracking
  • Incurred Cost Submission Preparation Support
  • FAR-Compliant Financial Record Organization
  • Audit-Ready Financial Documentation

*We do not prepare audits or tax returns, however, we will work closely with your CPA or Auditor to provide all reports necessary for a smooth filing.

Controller/Advisory Services

  • Report Preparation for Executive Board
  • Cash Flow Monitoring
  • Budget Preparation and Maintenance
  • NICRA Rates & Overhead Tracking

Back Office Support

  • Bill Pay Processing using BILL.com™, Melio, and QB Bill Pay
  • Payroll Processing
  • Invoice Preparation
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Government Contract Accounting Compliance

Maintaining compliance is one of the most important aspects of government contract accounting. Contractors must accurately track direct and indirect costs, allocate labor correctly, and maintain documentation that supports contract expenditures.

Arrow Bookkeeping assists organizations with:

  • DCAA accounting system preparation
  • Indirect cost rate monitoring
  • Contract cost accumulation
  • Labor allocation reporting
  • Project profitability analysis
  • Budget-to-actual reporting
  • Financial record organization for audits

Our accounting processes help government contractors maintain visibility into project performance while supporting compliance requirements throughout the contract lifecycle.

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  • government contract accounting
  • DCAA accounting
  • government contractor bookkeeping
  • contract cost accounting

Frequently Asked Questions

What is government contract accounting?

Government contract accounting is a specialized form of accounting that tracks costs, labor, indirect rates, and financial performance for organizations performing work under federal, state, or local government contracts.

DCAA compliance refers to accounting practices that satisfy standards reviewed by the Defense Contract Audit Agency (DCAA), including proper labor tracking, cost segregation, documentation, and financial reporting procedures.

Project cost tracking helps contractors monitor contract profitability, support billing requirements, manage indirect costs, and maintain accurate records for audits and compliance reviews.

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